THQI is in the business of fun and games, which is apropos
considering investors have been having a ball riding its stock
to new yearly highs. THQ Incorporated provides interactive
video games for the Sony PlayStation, Sega Dreamcast, Nintendo
64, Nintendo Game Boy and personal computers. The stock has
been trending higher over the past 10 months after hitting a
low of $7.63 on May 25th. On Friday, shares of THQI traded to
a 52-week high of $34.88, representing a 357% gain from the
low to the high. The stock price reflects an improved
fundamental outlook for THQI based on the success of the new
Sony PlayStation platform. We believe that THQI could move
even higher as the new PlayStation gains acceptance and
production of the consoles from Sony increases to meet demand.
From a technical standpoint, THQI has support at Friday's
intra-day low of $32.88 with additional support at $ 33.21,
the 5-dma. Resistance is Friday's intra-day high of $34.88 and
then the 12/7/99 intra-day low of $36.38. We are additionally
encouraged by the fact that THQI's MACD just turned positive
and that the OBV is at a year high. A bounce off of $34.13 or
a breakout above $34.88 on midday volume greater than 200,000
shares may be possible entry points. We plan to set stops at
$31.50 to limit potential losses.